Opportunities and Challenges Faced by Small and Medium Enterprises in Uzbekistan

Olimjon Gaybullaev

The Institute for Fiscal Studies, Ministry of Finance in Uzbekistan

Marian Oliński

Faculty of Economic Sciences, University of Warmia and Mazury in Olsztyn


Abstract

Small and medium enterprises (SMEs) are a pillar of economic development in most national economies - both more and less developed. Enterprises of this type, being more flexible than large entities, are better able to use the opportunities created by the environment. Nevertheless, in the course of their activity, they also face numerous challenges. Thus, the purpose of the presented research is to identify the opportunities created and existing challenges in the development of SMEs in Uzbekistan in recent years. According to the opinion of 384 respondents (CAWI), the most important opportunities created by the government involved tax benefits and subsidies, preferences for export products and tax incentives for those creating new jobs. At the same time, the most important challenges were poor infrastructure, lack of skilled specialists, problems with the credit allocation system and high-interest rates.


Keywords:

: small and medium enterprises, development, support policy

Agarwal, W., Agrawal, U., Mk, A., & Khan, S. (2019). A Study on Challenges Faced by SMEs in India. International Journal of Engineering Research and Management, 6(9), 33-37. Retrieved from https://www.ijerm.com/download_data/IJERM0609017.pdf.   Google Scholar

Akbaraliev, A., Sadirdinov, Sh., Omonov, Y., & Abdullaev, N. (2019). The challenge of developing a competitive logistics industry in Uzbekistan. 1-8. https://doi.org/10.13140/RG.2.2.11275.34085.   Google Scholar

Aliyev, S. (2019). Problems and Opportunities for Leveraging SME Finance through Value Chains in Azerbaijan. ADBI Working Paper, 973, 1-38. Retrieved from https://www.adb.org/publications/problems-opportunities-leveraging-sme-financevalue-chains-azerbaijan (July 2019).   Google Scholar

Azwa Ambad, S., Vivienne Andrew, J., & Awang Amit, H. (2020). Growth Challenges of SMEs: Empirical Evidence in Sabah, Malaysia. ASEAN Entrepreneurship Journal (AEJ), 6(1), 8-14. Retrieved from https://www.researchgate.net/publication/343404542.   Google Scholar

Brodziński, Z., Bojkowska, E., & Janek, S. (2020). Development of Micro-Enterprises in Rural Areas of the Warmińsko-Mazurskie Voivodship. Olsztyn Economic Journal, 15(2), 103-112. https://doi.org/10.31648/oej.5834.
Crossref   Google Scholar

Chiliya, N., & Roberts-Lombard, M. (2012). Impact of Level of Education and Experience on Profitability of Small Grocery Shops in South Africa. International Journal of Business Management, 3(1), 462-470. Retrieved from http://www.ijbmer.com/docs/volumes/vol3issue1/ijbmer2012030110.pdf.   Google Scholar

Eniola, A., & Entebang, H. (2015). SME Firm Performance-Financial Innovation and Challenges. Procedia – Social and Behavioral Sciences, 195(3), 334-342. https://doi.org/10.1016/j.sbspro.2015.06.361.
Crossref   Google Scholar

Eravia, D., Handayani, T., & Julina (2015). The Opportunities and Threats of Small and Medium Enterprises in Pekanbaru: Comparison between SMEs in Food and Restaurant Industries. Social and Behavioral Sciences, 169, 88-97. https://doi.org/10.1016/j.sbspro.2015.01.289.
Crossref   Google Scholar

Firdouse, R.K. (2014). Socio-Economic Factors Influencing Entrepreneurship Development: An Empirical Study Across the Small and Medium Enterprises of Chennai, State of Tamil Nadu, India. International Journal of Students Research in Technology & Management, 2(3), 89-94. https://doi.org/10.18510/ijsrtm.2014.231.
Crossref   Google Scholar

Gherghina, Ș.C., Botezatu, M.A., Hosszu, A., & Simionescu, L.N. (2020). Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability, 12(1), 1-22.
Crossref   Google Scholar

Glinkowska, B. (2019). Entrepreneurship of Small and Medium-Sized Enterprises in Poland in the Context of the Regions and International Activity. Olsztyn Economic Journal, 14(1), 102-112. https://doi.org/10.31648/oej.3649.
Crossref   Google Scholar

Hansjörg, H., & Zeynep Mualla, N. (2018). The Role of Small and Medium-sized Enterprises in Development. What Can be Learned from the German Experience? Global Labour University Working Paper, 53, 1-55. Retrieved from http://hdl.handle.net/10419/189840.   Google Scholar

Jimmy, H., & Pauric, M. (1999). Small business and enterprise development: questions about research methodology. International Journal of Entrepreneurial Behaviour & Research, 5(1), 5-18. http://dx.doi.org/10.1108/13552559910259829.
Crossref   Google Scholar

Kubíčková, L., Morávková, M., Tuzová, M., & Nečas, I. (2017). The Role of Small and Medium-Sized Enterprises in the Development of Rural Areas. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(6), 1987-1996.
Crossref   Google Scholar

Loader, K. (2005). Supporting SMEs through Government Purchasing Activity. The International Journal of Entrepreneurship and Innovation, 6 (1), 17-26. https://doi.org/10.5367/0000000053026383.
Crossref   Google Scholar

Luo, M., Al-Shami. S., & Mansor, N. (2019). The development of SMEs in China: Opportunities and Challenges. Revista de Ciencias Humanas y Sociales, 35(20), 2899-2921. Retrieved from https://produccioncientificaluz.org/index.php/opcion/article/view/29927 (3.08.2019).   Google Scholar

Maarof, M., & Mahmud, F. (2016). A Review of Contributing Factors and Challenges in Implementing Kaizen in Small and Medium Enterprises. Economics and Finance, 35, 522-531. https://doi.org/10.1016/S2212-5671(16)00065-4.
Crossref   Google Scholar

Madalina, B. (2013). Importance of small and medium-sized enterprises in Romanian economy. Annals – Economy Series, 4, 205-212.   Google Scholar

Musa, H., & Chinniah, M. (2016). Malaysian SMEs Development: Future and Challenges on Going Green. Procedia-Social and Behavioral Sciences, 224, 254-262. https://doi.org/10.1016/j.sbspro.2016.05.457.
Crossref   Google Scholar

Noor Hasnan, N., Aziz, N., Zulkifli, N., & Taip, F. (2014). Food Factory Design: Reality and Challenges Faced by Malaysian SMEs. Agriculture and Agricultural Science, 2, 328-336. https://doi.org/10.1016/j.aaspro.2014.11.046.
Crossref   Google Scholar

O‘Zbekiston Respublikasi Prezidentining Farmoni (2020). Decree of the President of the Republic of Uzbekistan. On further measures to support the population and businesses during the coronavirus pandemic. PD-5996. Retrieved from https://lex.uz/docs/-4815474 (18.05.2020).   Google Scholar

Organisation for Economic Co-operation and Development (2018). OECD. Strengthening SMEs and entrepreneurship for productivity and inclusive growth, SME Ministerial Conference, 22-23 February, Mexico City. Retrieved from https://www.oecd.org/publications/strengthening-smesand-entrepreneurship-for-productivity-and-inclusive-growth-c19b6f97-en.html (24.07.2019).   Google Scholar

Organization for Economic Co-operation and Development (2017). Boosting SME Internationalization in Uzbekistan through better export promotion policies. Retrieved from https://www.oecd.org/eurasia/competitiveness-programme/central-asia/Uzbekistan_Peer_review_note_dec2017_final.pdf (December 2017).   Google Scholar

Petković, S., Jäger, C., & Sašić, B. (2016). Challenges of Small and Medium Sized Companies at Early Stage of Development: Insights from Bosnia and Herzegovina. Management, 21(2), 45-76. Retrieved from https://www.researchgate.net/publication/313837270.   Google Scholar

Rahadi, R. (2016). Opportunities and Challenges for Micro-Small and Medium Business in Indonesia facing Asian Economic Community. Journal Management Dan Kewirausahaan, 18(1), 45-53. https://doi.org/10.9744/jmk.18.1.45-53.   Google Scholar

Resolution of the Cabinet of Ministers of the Republic of Uzbekistan. (2016). About measures for transition to the international system, classification of types of economic activity, No. 275. Retrieved from https://lex.uz/docs/3019920 (24.08.2016).   Google Scholar

Saidova, M. (2018). Current Obstacles of Business Development in Uzbekistan. International Conference on Eurasian Economies, 138-142. https://doi.org/10.36880/C10.02167.
Crossref   Google Scholar

Scott, P., Forte J., & Mazeau, A. (2017). Barriers and opportunities for sanitation SMEs: A study of the wider market system in Ghana. Water & Sanitation for the Urban Poor, 1-32. https://www.issuelab.org/resources/28424/28424.pdf.   Google Scholar

Soonae, P., In Hyeock, L.& Jung, E. K. (2020). Government support and small- and medium-sized enterprise (SME) performance: the moderating effects of diagnostic and support services. Asian Business & Management, 19(2), 213-238. https://doi.org/10.1057/s41291-019-00061-7.
Crossref   Google Scholar

State Committee of the Republic of Uzbekistan on Statistics. (2020) Q1. Retrieved from Q1https://stat.uz/uz/default/choraklik-natijalar/5708-choraklik-natijalar-2020.   Google Scholar

State Committee of the Republic of Uzbekistan on Statistics (2020) Q2. Retrieved from https://stat.uz/uz/rasmiy-statistika/small-business-and-entrepreneurship-2.   Google Scholar

Tadjibaeva, D. (2019). Small and Medium-Sized Enterprise Finance in Uzbekistan: Challenges and Opportunities. Asian Development Bank Institute, 997, 1-44. Retrieved from https://www.adb.org/publications/small-medium-sized-enterprise-finance-uzbekistan-challenges-opportunities (September 2019).   Google Scholar

The main problems of production in Uzbekistan are identified. (2020). Central Bank. Retrieved from https://review.uz/ (17.11.2020).   Google Scholar

Uzbekistan National News Agency. (2021). Retrieved from https://uza.uz/uz/search/?q=Kichik+biznes+va+xususiy+tadbirkorlik+subektlari&spell=1&where=&PAGEN_1=16 (21.01.2021).   Google Scholar

Wang, Y. (2016). What are the biggest obstacles to growth of SMEs in developing countries? An empirical evidence from an enterprise survey. Borsa Istanbul Review, 16(3), 167-176. ttps://doi.org/10.1016/j.bir.2016.06.001.
Crossref   Google Scholar

Yadollahi Farsi, J., & Taghi Toghraee, M. (2014). Identification the main challenges of small and medium sized enterprises in exploiting of innovative opportunities (Case study: Iran SMEs). Journal of Global Entrepreneurship Research, 2(1), 1-15. https://doi.org/10.1186/2251-7316-2-4.
Crossref   Google Scholar

Yoshino, N., & Taghizadeh-Hesary, F. (2016). Major Challenges Facing Small and Medium-sized Enterprises in Asia and Solutions for Mitigating Them. ADBI Working Paper, 564, 1-22. https://doi.org/10.2139/ssrn.2766242.
Crossref   Google Scholar

Yoshino, N., & Taghizadeh-Hesary, F. (2018). The Role of SMEs in Asia and Their Difficulties in Accessing Finance. ADBI Working Paper, 911, 1-22. Retrieved from https://www.adb.org/publications/role-smes-asia-and-their-difficulties-accessing-finance (December 2018).   Google Scholar

Download


Published
2020-12-31

Cited by

Gaybullaev, O., & Oliński, M. (2020). Opportunities and Challenges Faced by Small and Medium Enterprises in Uzbekistan. Olsztyn Economic Journal, 15(4), 285–299. https://doi.org/10.31648/oej.6852

Olimjon Gaybullaev 
The Institute for Fiscal Studies, Ministry of Finance in Uzbekistan
Marian Oliński 
Faculty of Economic Sciences, University of Warmia and Mazury in Olsztyn



License

Copyright (c) 2021 Olsztyn Economic Journal

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

An Author declares that his paper has not been published before (under the same or another title, or is a part of another publication) and does not infringe copyrights of other persons**. At the same time, the Author transfers to the Publisher the exclusive right to publish and to circulate this work in print in the form of a non-serial journal publication and in a form of an electronic publication.

Author's statement

The journal is available on Creative Common license CC-BY-NC-ND